Beedi workers face uncertainty due to GST

Forum says 28% tax on the industry will be hard on the workers, most of whom are women

June 10, 2017 10:29 pm | Updated 10:29 pm IST - Chennai

A vulnerable lot:  Only 2.5 lakh beedi workers have access to Provident Fund accounts, loans and gratuity, say activists.

A vulnerable lot: Only 2.5 lakh beedi workers have access to Provident Fund accounts, loans and gratuity, say activists.

With the beedi industry facing a tax rate of 28% under the impending GST norms, the National Forum for Beedi Workers (NFBW) has demanded social security and alternative employment to cope with the post-implementation loss.

According to Nalan B., convener of the NFBW who addressed mediapersons at the Chennai Press Club recently, only 2.5 lakh workers from the sector have access to Provident Funds accounts, loans and gratuity .

The other 17 lakh from Tamil Nadu do not have requisite identity proof to reap the benefits of government schemes. Banks too refuse to give them loans.

The workforce which largely consists of women, has poor access to finance, housing, education and health.

Health issues

Women rarely take bathroom breaks and are afraid to go to the hospital as they may miss rolling 1,000 beedis before their stipulated deadline — 11 a.m each day.

Tobacco flakes cause respiratory and gynaecological problems. “We ask the government to train these women under the Skill India campaign so that they can eventually shift to fields such as tailoring and baking,” said Mr. Nalan. Children who eke out a living by rolling beedis have few avenues to study. K. Murthy, the director of Pasumai Trust, who focuses on the Right to Education said, “The RTE only ensures that girls study until they are 14 years of age. After that, they are forced to join the industry. If there is a better scholarship system in place unlike the ‘Attendance Scholarship for Girl Children’, it would be of great use.”

Attendance incentive

The ‘Attendance Scholarship for Girl Children’, a programme from 2011, paid ₹2 for each day a student attended class.

According to Mr. Murthy, the scheme was poorly implemented as authorities often evaded paying the daily allowance. The plea to the State government also calls for the eradication the role of moneylenders and middlemen in the industry.

“Women and children are usually harassed by these men. The moneylenders charge exhorbitant vaara vaddi (weekly interest). We can only hope that the government changes this,” said Mr. Nalan.

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